Book Categories

Summary of Corporate Financial Distress and Bankruptcy

Last published in 1993, Corporate Financial Distress and Bankruptcy is still considered the most authoritative finance book on the subject.   Since then, however, the fields of corporate distress and bankruptcy, as well as the related markets dealing with high yield and distressed debt, have undergone enormous growth and popularity.

Title Information

ISBN:

9780471691891

Pages:

368 pages

Format:

Hardback

Product Code:

22488

Publisher:

John Wiley & Sons Ltd

Published:

10/01/2006

Edition:

3rd Edition

Press and Industry Reviews

"The masters return! The new edition of this definitive treatment of the markets for distressed and bankrupt debt reflects the dramatic recent changes in the market, including the implications of the amazing episode of defaults that occurred in 2001–2002. The authors continue to provide depth and breadth of coverage, including in–depth analyses of default prediction and recovery in default. The book will be particularly valuable for MBA students and professional investors."
- Darrell Duffie , James I. Miller Professor of Finance, Graduate School of Business, Stanford University

"After thirty years of distressed securities investing, I was pleasantly surprised that I learned something new from every chapter of this book. It should be required reading for everyone from students to the most experienced practitioner."
- Wilbur L. Ross, Chairman, WL Ross & Co. LLC

"A must–read for business students and professionals involved with corporate bonds or loans. Altman and Hotchkiss do an excellent job of covering a broad range of aspects of corporate distress. The information is indispensable for investors and executives alike."
- Allan A. Brown, Cohead of Distressed Debt Trading, Concordia Advisors LLC

"All who work, study, invest, or otherwise find themselves involved with this topic will want to add this book to their library. I certainly will."
- Ben Branch, Professor of Finance, Isenberg School of Management, University of Massachusetts

"Corporate Financial Distress and Bankruptcy is an invaluable compendium of methodology, data, and history. The authors do a splendid job of explaining theory to the practitioner and the practical side of bankruptcy to theoreticians."
- Martin Fridson, Publisher, Leverage World

"A thorough, comprehensive treatment of corporate financial distress and credit risk by long–standing experts in the field. Invaluable for those involved in fixed–income securities and in distress restructuring."
- James C. Van Horne , A.P. Giannini Professor of Banking and Finance, Graduate School of Business, Stanford University

"Altman and Hotchkiss have updated the leading text on bankruptcy, risk–return relationships for distressed debt, and the theory and application of distress prediction models."
- J. Fred Weston, Professor of Finance Emeritus, recalled, at The Anderson School at UCLA, and past president of both the American Finance Association and the Financial Management Association International

Write a review of this book

Customer Reviews from Amazon

About Edward I. Altman and Edith Hotchkiss

EDWARD I. ALTMAN, PhD, MBA, is the Max L. Heine Professor of Finance at the Stern School of Business, New York University. Since 1990, he has directed the research effort in fixed income and credit markets at the NYU Salomon Center. Previously, Altman chaired the Stern School's MBA program for twelve years. He was inducted into the Fixed Income Analyst Society's Hall of Fame in 2001 and is an advisor to many financial, consulting, and governmental institutions. Dr. Altman is the Chairman of the Academic Advisory Council of the Turnaround Management Association and a member of its Board of Directors.

EDITH HOTCHKISS, PhD, is Associate Professor of Finance at Boston College. Her research has been published in the Journal of Finance, the Journal of Corporate Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Journal of Financial Intermediation. She has served as an advisor in several recent Chapter 11 cases and is a member of the Board of Directors of the Turnaround Management Association.

Contents of Corporate Financial Distress and Bankruptcy

Preface
Acknowledgements
Author Biographies

1. Corporate Bankruptcy and Distress: Introduction and Statistical Background

2. Evolution of the Bankruptcy Process in the US and International Comparisons

3. Post-Chapter 11 Performance

4. The Costs of Bankruptcy

5. Distressed Firm Valuation

6. Firm Valuation and Corporate Leveraged Restructuring

7. The High Yield Bond Market: Risks and Returns for Investors and Analysts

8. Investing In Distressed Securities

9. Risk-Return Performance of Defaulted Bonds and Bank Loans

10. Corporate Governance In Distressed Firms


PART TWO: Techniques For The Classification and Prediction Of Corporate Financial Distress And Their Applications

11. Corporate Credit Scoring-Insolvency Risk Models

12. An Emerging Market Credit Scoring System for Corporates

13. Application of Distress Prediction Models

14. Distress Prediction Models: Catalysts for Constructive Change-Managing a Financial Turnaround

15. Estimating Recovery Rates on Defaulted Debt

Endnotes
Index